VAT is an indirect tax levied on the value added by each actor involved in the production chain of a product or service. The tax falls to the end consumer, so each business or freelancer in the chain passes their VAT on to the next link until it reaches the end consumer.

as they remember held, in this sense, “the self-employed person is only an intermediary between the treasury and the final consumer, since he pays to the treasury the difference between the VAT that he passed on and charged to his customers and that he has must be worn for purchases from suppliers. In principle, all self-employed persons who pursue a commercial activity must submit a quarterly sales tax return using form 303. This is supplemented by the annual sales tax overview, which must be submitted with Form 390 in the month of January.

However, there are a number of activities that are exempt from compliance with this obligation. They are the following:

teaching servicesprovided by public or private bodies authorized by the State, the CCAA or other public bodies to carry out these activities: education of children and young people up to university and postgraduate level; teach language; Education and professional recycling.

-Help for individuals by doctors and health services

-Professional services (Individuals) provided by visual artists, writers, composers, translators…

-Operations and Benefits insurance, reinsurance and capitalization services.

-brokerage services provided to individuals in various tax-exempt financial transactions.

-Intervention services provided by notaries (notaries or other public officials) in tax-exempt financial transactions.

-Rental of houses and Delivery of land and non-building land, as well as secondary and subsequent deliveries of buildings.

-Delivery of stamps and stamped effects of legal tender

In short, most non-VAT activities fall within medical and health services, education and training, cultural and sports associations, finance and insurance, and rental housing. The other commercial activities must apply the general VAT rate, which is 21%, on their invoices.

Self Employed, Self Employed Taxes